Northern Rock is nationalised

[CoteDAzur]

Government announces the nationalisation of Northern Rock this Sunday afternoon.

Shareholders are not happy campers. Neither are taxpayers, I imagine, who are footing the bill of Northern Rock management's incompetence.

Wow... what gives him the right to be so frivilous with our money? Can we impeach him on an abuse of power? This makes the aircraft carriers look like pocket money.

I wonder whih services he will cut to pay this debt. Oh, wait... no he'll raise taxes because of course that is free money.

He will do anything to save his miracle!We need raised interest rates tighter lending criteria and low inflation for a few years but that won't happen without a fight.A recession is now inevitable surely?

My worry is - if Gordy managed to attain such massive levels of national debt during a long boom, what on earth is going to happen now that it's all hit the fan?

I think the govt's response to the whole NR thing is going to be VERY interesting. Someone correct me if I have understood this wrongly, but if they are going to really keep it running as a business, they will have to start streamlining NR and repossessing people's houses as increasing numbers can no longer pay their mortgages (just as other lenders are doing). Political suicide. But if they don't do this, the taxpayer gets whacked with a huge stick. Political suicide.

They are totally screwed.

Mind you I am totally unimpressed by the Tories' response to all this - all they can do is pee themselves with glee. Vince Cable is the only politician who seems to understand basic economics and is talking sense, has been for a long time (and I've never been a LibDem voter).

thats right Northern Rock has a high percentage of non standard lending.And apparently lots of their clients are in trouble so GB will essentially be repossessing the houses he pushed on buyers via his low interest rate easy lending economy.Nightmare. There will be others to follow too and the prospect of -ve equity is very real now

FROM THE BBC

"UK taxpayers are now subsidising the bank in loans and guarantees to other lenders to the tune of about £55bn. Under the new strategy this will jump to £110bn, a cost of £3,500 per taxpayer."

That's right, dig deep in your pockets, have you got a spare three and a half grand you have nothing better to do with than hand over to Northern Rock?!?!?!

And then: "Explaining the government's decision, Mr Darling said it was better for the government to hold onto Northern Rock until market conditions improve and its value increases. "

Excuse me... what??? Until the market condition improve? But this downturn in the market has barely begun. When exactly do you think it's going to improve? Idiot.

Full story here: news.bbc.co.uk/1/hi/business/7250023.stm

do you think if things suddenly take off again and northern rock are booming we will recieve the benefit?No never

The more I think about the whole national debt thing, the more unbelievable I find it that anyone ever called GB a great chancellor. I always thought it was all smoke and mirrors. How can Labour possibly win another election?

I think we were all sold a bit of a dream and the huge increases in house prices coupled with lax lending afforded people all manner of consumer goods which they would never have been able to afford on their salaries.Now what will happen when there is no more free credit and the chancellor and the Bof E are suggestng we need to become a nation of savers again!How??????

If they really wanted us to become a nation of savers again they wouldn't be cutting interest rates...

exactly.They are all over the place with their ideas

So now it is nationalised does it mean that if you default on your mortgage with them the government can reposess your home - or would you be able to keep it and just call it a council house?

I don't know but half of the money that was given to improve the NHS was paid to doctors to increase their salaries by another 30%

A few billion was wasted on failed computer projects, then there's the billions wasted on gov departments that don't work such as the one where they tried to retrieve stolen money. The Government regularly wastes billions of tax payers money.

They just need to ask for more, it's a racket.

oh great

I pay swingeing amounts of tax for

wars
an increase in NHS spend in real terms of 50% with little visible benefit
mps paying backhanders to their relatives

and now I have to subsidise grossly ineffective management who made serious misjudgements

Fab

Better get working so that the government can waste more of our money

I know I can't read the papers without getting cross. They are considering paying cash to parents who feed their kids healthy meals and make them cycle to school.. and don't mention the millions spent on incapacity benefit..

When are we going to vote these bozos out? Oh, that's right. We have to wait for Gordon to call an election, which I suppose he is not likely to do now.

I am wondering what will happen with the other lenders who have mismanged their books.I know the govt gave them the powers to ask for help in secret so does this mean the govt and in effect the taxpayer could be paying for a run of these cases?

could be worse could be in the US

Thing is I think they're all pretty much the same.

Of course it does, Noddy.

I have to hand it to Tony. He knew when to get out. Won't be long before people start talking about the Good old days under Blair.

UK economy in much worse state than the US

can i just ask as i am really and quite embarrassingly not in the know about things like this...if you have a mortgage with NR how does the nationalisation affect you?? (or me as i should add that i have a mortgage with NR and am due to complete on my new house in a few short weeks also staying with NR)will it mean i wont get my new mortgage?? all they tell you on the helpline/ customer service number is that we as customers dont need to worry!! i dont see how we wouldnt have anything to worry about myself but maybe some of you can help me to understand it more...please
xx ei xx